Internal public debt is the debt raised by the government from sources within the country. Sources of internal public debt include borrowing from commercial banks and other financial institutions (A), funds managed by insurance companies (B), and accumulated funds from provident funds (C), all of which are domestic entities or schemes. Loans from international financial institutions like the International Monetary Fund (IMF) are sources of external public debt, as they are loans taken from entities outside the country.
Which among the following is not the source of internal public debt ?
Asked in MPSC CS Prelims 2012 · Topic: Fiscal Policy & Revenue (Public Debt: Sources, types, debt sustainability, and management)
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Answer: D. Loans from International Monetary Fund
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